Malaysia Airlines plans to sell off property, including a piece of freehold land and a building which it currently operates from, to the government's pension fund.

The sale, worth RM145 million (US$41.4 million), to the Employees Provident Fund (EPF) is part of the airline's restructuring plan, the carrier said late Friday in a statement to Malaysia's bourse.

Malaysia Airlines said the sale of the land and the building known as MAS Academy "forms part of our strategic asset rationalisation exercise by the disposal of non-core assets as an initiative in the business turnaround plan of the company."

The airline will lease back the building from the EPF for five years, with an option to renew the lease period for a further five years.

Forecast profit for 2007

Last year, the loss-making national carrier disposed of its headquarters and other buildings as part of the restructuring exercise, which has also seen it axing unprofitable air routes.

It posted a smaller than expected net loss of RM136.4 million for 2006 after embarking on the turnaround plan a year ago, following massive losses of RM1.14 billion for 2005.

Malaysia Airlines has forecast a net profit of between RM50 million and RM90 million for 2007.